{"url_path":"/sec/cik-0001959961/10-q/2026/item-5","section_key":"item-5","section_title":"Item 5 Other Information","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1959961/0001959961-26-000010-index.html","accession_number":"0001959961-26-000010","cik":"0001959961","ticker":null,"issuer_name":"IPC Alternative Real Estate Income Trust, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1959961/0001959961-26-000010-index.html","primary_entity_key":"0001959961","primary_entity_name":"IPC Alternative Real Estate Income Trust, Inc."},"word_count":11432,"has_tables":true,"body_markdown":"Item 5. Other Information\n\nTrading Arrangements\n\nDuring the quarter ended March 31, 2026, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”\n\nFinancial Statements of the Operating Partnership\n\nPrior to May 1, 2026, we accounted for the units acquired in the Operating Partnership as an equity method investment during any period our investment in the Operating Partnership was not considered significant to the Operating Partnership. Effective May 1, 2026, following the contribution of capital raised as a result of the May 1, 2026 closing in our Public Offering, we determined that our investment in the Operating Partnership was significant to the Operating Partnership, as determined in accordance with GAAP. As a result, effective May 1, 2026, we consolidated the Operating Partnership and will present the results of operations thereafter on a consolidated basis. We expect to continue to invest our capital and all our proceeds from the Offerings in the Operating Partnership and hold no other assets other than OP Units. As such, we have included unaudited consolidated financial statements as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025, as we believe these financial statements would be meaningful to investors.\n\n34\n\n \n\n \n\nINDEX TO FINANCIAL STATEMENTS\n\n \n\nPage\n\n \n\n \n\nIPC Alternative Real Estate Operating Partnership, LP\n\n \n\n \n\nFinancial Statements (unaudited):\n\n \n\n \n\n[Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025](#op_balance_sheet)\n\n36\n\n \n\n[Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2026 and 2025](#op_income_statement)\n\n37\n\n \n\n \n\n[Consolidated Statements of Partners’ Capital for the three months ended March 31, 2026 and 2025](#op_partners_capital_statement)\n\n38\n\n \n\n \n\n[Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025](#op_cash_flow_statement)\n\n39\n\n \n\n \n\n[Notes to Consolidated Financial Statements](#op_notes_to_consolidated_financials)\n\n41\n\n \n\n \n\n \n\n35\n\n \n\n \n\nIPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP\n\nCONSOLIDATED BALANCE SHEETS\n\n(Unaudited, dollar amounts in thousands)\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nInvestment properties held and used:\n\n \n\n \n\n \n\n \n\n \n\n \n\nLand\n\n \n\n$\n\n56,953\n\n \n\n \n\n$\n\n56,953\n\n \n\nBuilding and other improvements\n\n \n\n \n\n381,783\n\n \n\n \n\n \n\n381,726\n\n \n\nTotal\n\n \n\n \n\n438,736\n\n \n\n \n\n \n\n438,679\n\n \n\nLess: accumulated depreciation\n\n \n\n \n\n(59,138\n\n)\n\n \n\n \n\n(55,596\n\n)\n\nNet investment properties held and used\n\n \n\n \n\n379,598\n\n \n\n \n\n \n\n383,083\n\n \n\nCash and cash equivalents\n\n \n\n \n\n6,817\n\n \n\n \n\n \n\n8,753\n\n \n\nRestricted cash\n\n \n\n \n\n1,930\n\n \n\n \n\n \n\n413\n\n \n\nAccounts and rent receivable\n\n \n\n \n\n5,619\n\n \n\n \n\n \n\n5,462\n\n \n\nAcquired lease intangible assets, net\n\n \n\n \n\n25,177\n\n \n\n \n\n \n\n26,121\n\n \n\nFinance lease right-of-use asset, net\n\n \n\n \n\n1,982\n\n \n\n \n\n \n\n1,995\n\n \n\nOperating lease right-of-use assets, net\n\n \n\n \n\n3,325\n\n \n\n \n\n \n\n3,334\n\n \n\nOther assets\n\n \n\n \n\n3,697\n\n \n\n \n\n \n\n2,559\n\n \n\nTotal assets\n\n \n\n$\n\n428,145\n\n \n\n \n\n$\n\n431,720\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLIABILITIES AND PARTNERS’ CAPITAL\n\n \n\n \n\n \n\n \n\n \n\n \n\nLiabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nMortgage loans payable, net\n\n \n\n$\n\n270,883\n\n \n\n \n\n$\n\n270,872\n\n \n\nCredit facility payable (Note 9)\n\n \n\n \n\n9,000\n\n \n\n \n\n \n\n8,000\n\n \n\nAccounts payable and accrued expenses\n\n \n\n \n\n3,206\n\n \n\n \n\n \n\n3,005\n\n \n\nFinance lease liability\n\n \n\n \n\n2,900\n\n \n\n \n\n \n\n2,890\n\n \n\nOperating lease liability\n\n \n\n \n\n1,767\n\n \n\n \n\n \n\n1,762\n\n \n\nDistributions payable\n\n \n\n \n\n614\n\n \n\n \n\n \n\n624\n\n \n\nRedemptions payable\n\n \n\n \n\n1,875\n\n \n\n \n\n \n\n459\n\n \n\nAcquired lease intangible liabilities, net\n\n \n\n \n\n26,887\n\n \n\n \n\n \n\n27,316\n\n \n\nDue to related parties (Note 9)\n\n \n\n \n\n1,287\n\n \n\n \n\n \n\n505\n\n \n\nOther liabilities\n\n \n\n \n\n1,844\n\n \n\n \n\n \n\n2,073\n\n \n\nTotal liabilities\n\n \n\n \n\n320,263\n\n \n\n \n\n \n\n317,506\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommitments and contingencies (Note 8)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPartners’ Capital:\n\n \n\n \n\n \n\n \n\n \n\n \n\nGeneral Partner\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nLimited Partners\n\n \n\n \n\n105,564\n\n \n\n \n\n \n\n112,109\n\n \n\nAccumulated other comprehensive income\n\n \n\n \n\n2,318\n\n \n\n \n\n \n\n2,105\n\n \n\nTotal partners’ capital\n\n \n\n \n\n107,882\n\n \n\n \n\n \n\n114,214\n\n \n\nTotal liabilities and partners’ capital\n\n \n\n$\n\n428,145\n\n \n\n \n\n$\n\n431,720\n\n \n\nSee accompanying notes to consolidated financial statements.\n\n36\n\n \n\n \n\nIPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP\n\nCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS\n\n(Unaudited, dollar amounts in thousands)\n\n \n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nRevenues:\n\n \n\n \n\n \n\n \n\n \n\n \n\nRental revenue\n\n \n\n$\n\n8,533\n\n \n\n \n\n$\n\n8,333\n\n \n\nOther property revenue\n\n \n\n \n\n97\n\n \n\n \n\n \n\n62\n\n \n\nTotal revenues\n\n \n\n \n\n8,630\n\n \n\n \n\n \n\n8,395\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty operating expenses\n\n \n\n \n\n1,384\n\n \n\n \n\n \n\n1,225\n\n \n\nReal estate tax expense\n\n \n\n \n\n504\n\n \n\n \n\n \n\n463\n\n \n\nGeneral and administrative expenses\n\n \n\n \n\n1,611\n\n \n\n \n\n \n\n1,022\n\n \n\nAdvisor management fee (Note 9)\n\n \n\n \n\n207\n\n \n\n \n\n \n\n192\n\n \n\nPerformance participation allocation (Note 9)\n\n \n\n \n\n661\n\n \n\n \n\n \n\n—\n\n \n\nDepreciation and amortization\n\n \n\n \n\n4,408\n\n \n\n \n\n \n\n4,832\n\n \n\nTotal expenses\n\n \n\n \n\n8,775\n\n \n\n \n\n \n\n7,734\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther Income (Expense):\n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest expense\n\n \n\n \n\n(3,423\n\n)\n\n \n\n \n\n(3,781\n\n)\n\nInterest and other income\n\n \n\n \n\n7\n\n \n\n \n\n \n\n—\n\n \n\nNet loss\n\n \n\n$\n\n(3,561\n\n)\n\n \n\n$\n\n(3,120\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nComprehensive loss:\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet loss\n\n \n\n$\n\n(3,561\n\n)\n\n \n\n$\n\n(3,120\n\n)\n\nUnrealized gain (loss) on derivatives\n\n \n\n \n\n1,081\n\n \n\n \n\n \n\n(300\n\n)\n\nReclassification adjustment for amounts included in net loss\n\n \n\n \n\n(868\n\n)\n\n \n\n \n\n(1,028\n\n)\n\nComprehensive loss\n\n \n\n$\n\n(3,348\n\n)\n\n \n\n$\n\n(4,448\n\n)\n\nSee accompanying notes to consolidated financial statements.\n\n37\n\n \n\n \n\nIPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP\n\nCONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL\n\n(Unaudited, dollar amounts in thousands)\n\n \n\nFor the Three Months Ended March 31, 2026\n\n \n\nGeneral\nPartner’s Capital\n\n \n\n \n\nLimited\nPartners’ Capital\n\n \n\n \n\nAccumulated\nOther Comprehensive\nIncome\n\n \n\n \n\nTotal\nPartners’ Capital\n\n \n\nBalance at December 31, 2025\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n112,109\n\n \n\n \n\n$\n\n2,105\n\n \n\n \n\n$\n\n114,214\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nContributions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,095\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,095\n\n \n\nRedemptions of OP Units\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(2,030\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(2,030\n\n)\n\nDistributions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,867\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,867\n\n)\n\nEquity-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n28\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n28\n\n \n\nOffering costs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(210\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(210\n\n)\n\nUnrealized gain on derivatives\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,081\n\n \n\n \n\n \n\n1,081\n\n \n\nReclassification adjustment for amounts\n   included in net loss\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(868\n\n)\n\n \n\n \n\n(868\n\n)\n\nNet loss\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3,561\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3,561\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance at March 31, 2026\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n105,564\n\n \n\n \n\n$\n\n2,318\n\n \n\n \n\n$\n\n107,882\n\n \n\n \n\nFor the Three Months Ended March 31, 2025\n\n \n\nGeneral\nPartner’s Capital\n\n \n\n \n\nLimited\nPartners’ Capital\n\n \n\n \n\nAccumulated\nOther Comprehensive\nIncome\n\n \n\n \n\nTotal\nPartners’ Capital\n\n \n\nBalance at December 31, 2024\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n126,805\n\n \n\n \n\n$\n\n5,912\n\n \n\n \n\n$\n\n132,717\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nContributions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,159\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,159\n\n \n\nRedemptions of OP Units\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(903\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(903\n\n)\n\nDistributions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,813\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,813\n\n)\n\nEquity-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n31\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n31\n\n \n\nOffering costs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(125\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(125\n\n)\n\nUnrealized loss on derivatives\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(300\n\n)\n\n \n\n \n\n(300\n\n)\n\nReclassification adjustment for amounts\n   included in net loss\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,028\n\n)\n\n \n\n \n\n(1,028\n\n)\n\nNet loss\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3,120\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3,120\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance at March 31, 2025\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n122,034\n\n \n\n \n\n$\n\n4,584\n\n \n\n \n\n$\n\n126,618\n\n \n\nSee accompanying notes to consolidated financial statements.\n\n \n\n38\n\n \n\nIPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Unaudited, dollar amounts in thousands)\n\n \n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nCash flows from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet loss\n\n \n\n$\n\n(3,561\n\n)\n\n \n\n$\n\n(3,120\n\n)\n\nAdjustments to reconcile net loss to net cash provided by operating\n   activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n\n \n\n4,408\n\n \n\n \n\n \n\n4,832\n\n \n\nAmortization of debt issuance costs and premium/discount\n\n \n\n \n\n281\n\n \n\n \n\n \n\n400\n\n \n\nAmortization of acquired above- and below-market leases, net\n\n \n\n \n\n(350\n\n)\n\n \n\n \n\n(315\n\n)\n\nAmortization of equity-based compensation\n\n \n\n \n\n28\n\n \n\n \n\n \n\n31\n\n \n\nAmortization of finance lease right-of-use asset\n\n \n\n \n\n13\n\n \n\n \n\n \n\n13\n\n \n\nAmortization of operating lease right-of-use assets\n\n \n\n \n\n9\n\n \n\n \n\n \n\n9\n\n \n\nStraight-line income\n\n \n\n \n\n(207\n\n)\n\n \n\n \n\n(115\n\n)\n\nChanges in assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts and rent receivable\n\n \n\n \n\n50\n\n \n\n \n\n \n\n—\n\n \n\nOther assets\n\n \n\n \n\n236\n\n \n\n \n\n \n\n203\n\n \n\nAccounts payable and accrued expenses\n\n \n\n \n\n211\n\n \n\n \n\n \n\n416\n\n \n\nDue to related parties\n\n \n\n \n\n774\n\n \n\n \n\n \n\n93\n\n \n\nOperating lease liability\n\n \n\n \n\n5\n\n \n\n \n\n \n\n4\n\n \n\nOther liabilities\n\n \n\n \n\n(654\n\n)\n\n \n\n \n\n(14\n\n)\n\nNet cash flows provided by operating activities\n\n \n\n \n\n1,243\n\n \n\n \n\n \n\n2,437\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash flows from investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCapital expenditures and tenant improvements\n\n \n\n \n\n(90\n\n)\n\n \n\n \n\n(63\n\n)\n\nNet cash flows used in investing activities\n\n \n\n \n\n(90\n\n)\n\n \n\n \n\n(63\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nContributions\n\n \n\n \n\n1,027\n\n \n\n \n\n \n\n1,159\n\n \n\nProceeds from credit facility\n\n \n\n \n\n1,000\n\n \n\n \n\n \n\n—\n\n \n\nRedemptions of OP Units\n\n \n\n \n\n(614\n\n)\n\n \n\n \n\n(1,962\n\n)\n\nPayment of offering costs\n\n \n\n \n\n(202\n\n)\n\n \n\n \n\n(85\n\n)\n\nDistributions paid\n\n \n\n \n\n(1,809\n\n)\n\n \n\n \n\n(1,719\n\n)\n\nPayment of debt issuance costs\n\n \n\n \n\n(270\n\n)\n\n \n\n \n\n—\n\n \n\nCash paid for interest rate derivatives\n\n \n\n \n\n(704\n\n)\n\n \n\n \n\n—\n\n \n\nNet cash flows used in financing activities\n\n \n\n \n\n(1,572\n\n)\n\n \n\n \n\n(2,607\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet decrease in cash, cash equivalents and restricted cash\n\n \n\n \n\n(419\n\n)\n\n \n\n \n\n(233\n\n)\n\nCash, cash equivalents and restricted cash, at beginning of the period\n\n \n\n \n\n9,166\n\n \n\n \n\n \n\n8,174\n\n \n\nCash, cash equivalents and restricted cash, at end of the period\n\n \n\n$\n\n8,747\n\n \n\n \n\n$\n\n7,941\n\n \n\nSee accompanying notes to consolidated financial statements.\n\n39\n\n \n\n \n\nIPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)\n\n(Unaudited, dollar amounts in thousands)\n\n \n\nSupplemental disclosure of cash flow information:\n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid for interest\n\n \n\n$\n\n3,556\n\n \n\n \n\n$\n\n3,091\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSupplemental schedule of non-cash investing and financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDistributions payable\n\n \n\n$\n\n614\n\n \n\n \n\n$\n\n604\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDistributions reinvested\n\n \n\n$\n\n68\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRedemptions payable\n\n \n\n$\n\n1,875\n\n \n\n \n\n$\n\n606\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccrued capital expenditures\n\n \n\n$\n\n10\n\n \n\n \n\n$\n\n23\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIssuance of Class I OP Units for restricted share grants (Note 10)\n\n \n\n$\n\n27\n\n \n\n \n\n$\n\n—\n\n \n\nSee accompanying notes to consolidated financial statements.\n\n40\n\n \n\n \n\nIPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n(Unaudited, dollar amounts in thousands)\n\n \n\nThe accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in these financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of IPC Alternative Real Estate Operating Partnership, LP (the “Operating Partnership”) for the fiscal year ended December 31, 2025 included in the General Partner’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the “SEC”) on March 18, 2026, as certain footnote disclosures contained in such audited financial statements have been omitted from this Quarterly Report.\n\nNOTE 1 – ORGANIZATION\n\nThe Operating Partnership, a Delaware limited partnership, was formed on June 21, 2021 and commenced operations on September 2, 2021. IPC Alternative Real Estate Income Trust, Inc. (the “General Partner”) is the sole general partner of the Operating Partnership. The General Partner elected to be treated as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2024. Until that time, the General Partner was subject to taxation at regular corporate rates under the Internal Revenue Code of 1986, as amended. As of March 31, 2026, the Operating Partnership owned 30 medical outpatient properties totaling 746,601 square feet, four self-storage properties totaling 250,755 square feet and one student housing property with 406 student housing beds. The properties are located in 12 states. The Operating Partnership has no employees.\n\nThe Operating Partnership is externally managed by IPC Alternative Real Estate Advisor, LLC, a Delaware limited liability company (“the Advisor”), an affiliate of Inland Real Estate Investment Corporation, a Delaware corporation (“IREIC”), pursuant to an amended and restated advisory agreement dated and effective as of August 28, 2025, among the Operating Partnership, the General Partner and IPC Alternative Real Estate Advisor, LLC (as may be amended or restated from time to time, the “Advisory Agreement”). Pursuant to the Advisory Agreement, the Advisor is responsible for sourcing, evaluating and monitoring the General Partner’s and the Operating Partnership’s investment opportunities and making decisions related to the acquisition, management, financing and disposition of the General Partner’s and Operating Partnership’s assets, in accordance with the General Partner’s investment objectives, guidelines, policies and limitations, subject to oversight by the General Partner’s board of directors.\n\nOn September 28, 2023, the General Partner’s registration statement (the “Registration Statement”) on Form S-11 to register up to $1,250,000 in shares of common stock under a blind pool offering was declared effective by the SEC. On August 28, 2025, the General Partner commenced a private offering for up to $500,000 in certain shares of common stock. The General Partner contributes the proceeds from the offerings to the Operating Partnership. As of March 31, 2026, the Operating Partnership had 5,989,020 Operating Partnership Units (“OP Units”) outstanding, comprised of 190,469 Class T OP Units, 24,711 Class D OP Units, 5,294,945 Class A OP Units, 468,126 Class I OP Units and 10,769 Class X-1 OP Units. The General Partner held 186,088 of the Class T OP Units, 24,711 of the Class D OP Units, 376,414 of the Class I OP Units and 10,769 of the Class X-1 OP Units, representing a total 10.0% interest in the Operating Partnership as of March 31, 2026. See Note 5 – “Equity” and Note 9 – “Transactions with Related Parties” for further information. Effective May 1, 2026, following the contribution of capital raised as a result of the May 1, 2026 closing in the General Partner’s offering, the General Partner determined that its investment in the Operating Partnership was significant to the Operating Partnership, as determined in accordance with GAAP. As a result, effective May 1, 2026, the General Partner consolidated the Operating Partnership and will present its results of operations thereafter on a consolidated basis.\n\nThe Operating Partnership has invested and intends to invest, through anticipated follow-on investment activity, in stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. Healthcare-related assets may include medical outpatient buildings, ambulatory surgery centers, senior living communities and life science and laboratory facilities. The Operating Partnership may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others.\n\n41\n\n \n\nNOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n\nDisclosures discussing all significant accounting policies are set forth in the Operating Partnership’s audited consolidated financial statements for the fiscal year ended December 31, 2025 included in the General Partner’s Annual Report on Form 10-K filed with the SEC on March 18, 2026, under the heading Note 2 – “Summary of Significant Accounting Policies.” There have been no material changes to the Operating Partnership’s significant accounting policies during the three months ended March 31, 2026.\n\nGeneral\n\nThe consolidated financial statements have been prepared in accordance with GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year.\n\nRestricted Cash\n\nAmounts included in restricted cash represent those required to be set aside by lenders for real estate taxes, insurance, capital expenditures and tenant improvements on the Operating Partnership’s existing properties. These amounts also include post close escrows for tenant improvements, leasing commissions, master lease, tenant security deposits, general repairs and maintenance, and are classified as restricted cash on the Operating Partnership’s consolidated balance sheets.\n\nThe following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Operating Partnership’s consolidated balance sheets to such amounts shown on the Operating Partnership’s consolidated statements of cash flows:\n\n \n\n \n\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nCash and cash equivalents\n\n \n\n$\n\n6,817\n\n \n\n \n\n$\n\n7,568\n\n \n\nRestricted cash\n\n \n\n \n\n1,930\n\n \n\n \n\n \n\n373\n\n \n\nTotal cash, cash equivalents, and restricted cash\n\n \n\n$\n\n8,747\n\n \n\n \n\n$\n\n7,941\n\n \n\nAccounting Pronouncements Recently Issued but Not Yet Effective\n\nIn November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Additionally, in January 2025, the FASB issued ASU 2025-01, Clarifying the Effective Date, which revised the effective date of ASU 2024-03 for interim periods. ASU 2024-03 requires disclosures in the notes to the financial statements on specified information about certain costs and expenses that are included on the face of the income statement for each interim and annual reporting period. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Operating Partnership is currently evaluating the impact of ASU 2024-03 on the Operating Partnership’s consolidated financial statements.\n\nIn November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which clarifies guidance for hedge accounting, including grouping forecasted transactions by similar risk, hedging choose-your-rate debt, expanding eligibility for nonfinancial components, eliminating certain net written option tests, and addressing dual hedges. ASU 2025-09 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. The Operating Partnership is currently evaluating the impact of ASU 2025-09 on the Operating Partnership’s consolidated financial statements.\n\nIn December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies interim reporting guidance, defines applicability to entities presenting full GAAP interim financial statements, provides form and content requirements for condensed statements, and introduces a principle requiring disclosure of material events occurring after the prior annual period. ASU 2025-11 does not change existing disclosure requirements. ASU 2025-11 is effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Operating Partnership is currently evaluating the impact of ASU 2025-11 on the Operating Partnership’s interim reporting.\n\n42\n\n \n\nNOTE 3 – ACQUIRED INTANGIBLE ASSETS AND LIABILITIES\n\nThe following table summarizes the Operating Partnership’s identified intangible assets and liabilities as of March 31, 2026 and December 31, 2025:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nIntangible assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAcquired in-place lease value\n\n \n\n$\n\n44,066\n\n \n\n \n\n$\n\n44,066\n\n \n\nAcquired above-market lease value\n\n \n\n \n\n3,204\n\n \n\n \n\n \n\n3,204\n\n \n\nAccumulated amortization\n\n \n\n \n\n(22,093\n\n)\n\n \n\n \n\n(21,149\n\n)\n\nAcquired lease intangible assets, net\n\n \n\n$\n\n25,177\n\n \n\n \n\n$\n\n26,121\n\n \n\nIntangible liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAcquired below-market lease value\n\n \n\n$\n\n(34,740\n\n)\n\n \n\n$\n\n(34,740\n\n)\n\nAccumulated amortization\n\n \n\n \n\n7,853\n\n \n\n \n\n \n\n7,424\n\n \n\nAcquired lease intangible liabilities, net\n\n \n\n$\n\n(26,887\n\n)\n\n \n\n$\n\n(27,316\n\n)\n\nThe portion of the purchase price allocated to acquired above-market lease value and acquired below-market lease value is amortized on a straight-line basis over the term of the related lease as an adjustment to rental revenue. For below-market lease values, the amortization period includes any renewal periods with below-market fixed rate renewals. The portion of the purchase price allocated to acquired in-place lease value is amortized on a straight-line basis over the acquired leases’ weighted average remaining term.\n\nThe following table summarizes the Operating Partnership’s ground lease intangibles as of March 31, 2026 and December 31, 2025:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAcquired below-market ground lease intangibles, operating leases\n\n \n\n$\n\n1,813\n\n \n\n \n\n$\n\n1,813\n\n \n\nAccumulated amortization\n\n \n\n \n\n(82\n\n)\n\n \n\n \n\n(78\n\n)\n\nAcquired below-market ground lease intangibles, net\n\n \n\n$\n\n1,731\n\n \n\n \n\n$\n\n1,735\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAcquired above-market ground lease intangibles, finance lease\n\n \n\n$\n\n(500\n\n)\n\n \n\n$\n\n(500\n\n)\n\nAccumulated amortization\n\n \n\n \n\n30\n\n \n\n \n\n \n\n29\n\n \n\nAcquired above-market ground lease intangibles, net\n\n \n\n$\n\n(470\n\n)\n\n \n\n$\n\n(471\n\n)\n\nAcquired below-market ground lease intangibles, net are included within operating lease right-of-use assets, net and acquired above-market ground lease intangibles, net are included within finance lease right-of-use asset, net in the consolidated balance sheets. The portion of the purchase price allocated to above- and below-market ground lease intangibles is amortized on a straight-line basis over the term of the related lease as an adjustment to property operating expenses.\n\nAmortization pertaining to acquired in-place lease value, above-/below-market ground leases and, above-/below-market lease values is summarized below:\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nAmortization recorded as amortization expense:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAcquired in-place lease value\n\n \n\n$\n\n865\n\n \n\n \n\n$\n\n1,325\n\n \n\nAmortization recorded as a (reduction) increase to property\n   operating expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAbove-market ground lease, finance lease\n\n \n\n$\n\n(1\n\n)\n\n \n\n$\n\n(1\n\n)\n\nBelow-market ground leases, operating leases\n\n \n\n \n\n4\n\n \n\n \n\n \n\n4\n\n \n\nNet property operating expense increase\n\n \n\n$\n\n3\n\n \n\n \n\n$\n\n3\n\n \n\nAmortization recorded as a (reduction) increase to rental\n   revenue:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAcquired above-market leases\n\n \n\n$\n\n(79\n\n)\n\n \n\n$\n\n(113\n\n)\n\nAcquired below-market leases\n\n \n\n \n\n429\n\n \n\n \n\n \n\n428\n\n \n\nNet rental revenue increase\n\n \n\n$\n\n350\n\n \n\n \n\n$\n\n315\n\n \n\n \n\n43\n\n \n\nEstimated amortization of the respective intangible lease assets and liabilities as of March 31, 2026 for each of the five succeeding years and thereafter is as follows:\n\n \n\n \n\nAcquired\nIn-Place\nLeases\n\n \n\n \n\nAbove-\nMarket\nLeases\n\n \n\n \n\nBelow-\nMarket\nLeases\n\n \n\n \n\nAbove-\nMarket Ground\nLease\n\n \n\n \n\nBelow-\nMarket Ground\nLeases\n\n \n\n2026 (remainder of the year)\n\n \n\n$\n\n2,598\n\n \n\n \n\n$\n\n236\n\n \n\n \n\n$\n\n(1,285\n\n)\n\n \n\n$\n\n(4\n\n)\n\n \n\n$\n\n14\n\n \n\n2027\n\n \n\n \n\n3,465\n\n \n\n \n\n \n\n314\n\n \n\n \n\n \n\n(1,713\n\n)\n\n \n\n \n\n(6\n\n)\n\n \n\n \n\n18\n\n \n\n2028\n\n \n\n \n\n3,362\n\n \n\n \n\n \n\n312\n\n \n\n \n\n \n\n(1,713\n\n)\n\n \n\n \n\n(6\n\n)\n\n \n\n \n\n18\n\n \n\n2029\n\n \n\n \n\n3,206\n\n \n\n \n\n \n\n302\n\n \n\n \n\n \n\n(1,713\n\n)\n\n \n\n \n\n(6\n\n)\n\n \n\n \n\n18\n\n \n\n2030\n\n \n\n \n\n2,849\n\n \n\n \n\n \n\n257\n\n \n\n \n\n \n\n(1,646\n\n)\n\n \n\n \n\n(6\n\n)\n\n \n\n \n\n18\n\n \n\nThereafter\n\n \n\n \n\n8,001\n\n \n\n \n\n \n\n275\n\n \n\n \n\n \n\n(18,817\n\n)\n\n \n\n \n\n(442\n\n)\n\n \n\n \n\n1,645\n\n \n\nTotal\n\n \n\n$\n\n23,481\n\n \n\n \n\n$\n\n1,696\n\n \n\n \n\n$\n\n(26,887\n\n)\n\n \n\n$\n\n(470\n\n)\n\n \n\n$\n\n1,731\n\n \n\n \n\nNOTE 4 – DEBT AND DERIVATIVE INSTRUMENTS\n\nAs of March 31, 2026 and December 31, 2025, the Operating Partnership had the following mortgage loans payable:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nType of Debt\n\n \n\nPrincipal\nAmount\n\n \n\n \n\nWeighted Average Interest Rate\n\n \n\n \n\nPrincipal\nAmount\n\n \n\n \n\nWeighted Average Interest Rate\n\n \n\nCONA Mortgage Loan (maturity date October 29, 2027)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVariable rate with swap agreements\n\n \n\n$\n\n95,000\n\n \n\n \n\n \n\n4.99\n\n%\n\n \n\n$\n\n95,000\n\n \n\n \n\n \n\n4.99\n\n%\n\nBMO Mortgage Loan (maturity date September 30, 2028)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVariable rate with swap agreements\n\n \n\n \n\n122,655\n\n \n\n \n\n \n\n4.95\n\n%\n\n \n\n \n\n61,500\n\n \n\n \n\n \n\n2.97\n\n%\n\nVariable rate\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n61,155\n\n \n\n \n\n \n\n5.97\n\n%\n\nParkway UL Mortgage Loan (maturity date March 28, 2029)\n\n \n\n \n\n27,759\n\n \n\n \n\n \n\n5.94\n\n%\n\n \n\n \n\n27,759\n\n \n\n \n\n \n\n5.80\n\n%\n\nParkway Storage Mortgage Loan (maturity date April 25, 2026)\n\n \n\n \n\n28,000\n\n \n\n \n\n \n\n5.80\n\n%\n\n \n\n \n\n28,000\n\n \n\n \n\n \n\n5.80\n\n%\n\nTotal debt before discount and debt issuance costs including impact of interest rate swaps\n\n \n\n \n\n273,414\n\n \n\n \n\n \n\n \n\n \n\n \n\n273,414\n\n \n\n \n\n \n\n \n\nLess: Unamortized discount on assumed mortgage loan\n\n \n\n \n\n(116\n\n)\n\n \n\n \n\n \n\n \n\n \n\n(126\n\n)\n\n \n\n \n\n \n\nLess: Unamortized debt issuance costs\n\n \n\n \n\n(2,415\n\n)\n\n \n\n \n\n \n\n \n\n \n\n(2,416\n\n)\n\n \n\n \n\n \n\nTotal mortgage loans payable, net\n\n \n\n$\n\n270,883\n\n \n\n \n\n \n\n \n\n \n\n$\n\n270,872\n\n \n\n \n\n \n\n \n\nThe Operating Partnership’s indebtedness bore interest at a weighted average interest rate of 5.15% and 4.92% per annum as of March 31, 2026 and December 31, 2025, respectively, which includes the effects of interest rate swaps. The Operating Partnership estimates the fair value of its total debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by the Operating Partnership’s lenders using Level 3 inputs. The carrying value of the Operating Partnership’s debt excluding the discount on assumed mortgage loan and unamortized debt issuance costs was $273,414 and $273,414 as of March 31, 2026 and December 31, 2025, respectively, and its estimated fair value was $273,324 and $273,378 as of March 31, 2026 and December 31, 2025, respectively.\n\nThe discount on assumed mortgage loan is amortized over the remaining term of the underlying debt as a reduction to the interest expense.\n\n44\n\n \n\nAs of March 31, 2026, maturities of the Operating Partnership’s debt were as follows:\n\n \n\n \n\nMarch 31, 2026\n\n \n\nMaturities by Year:\n\n \n\nMaturities of\n Mortgage\nLoans\n\n \n\n2026 (remainder of the year)\n\n \n\n$\n\n28,000\n\n \n\n2027\n\n \n\n \n\n95,000\n\n \n\n2028\n\n \n\n \n\n122,655\n\n \n\n2029\n\n \n\n \n\n27,759\n\n \n\n2030\n\n \n\n \n\n—\n\n \n\nThereafter\n\n \n\n \n\n—\n\n \n\nTotal\n\n \n\n$\n\n273,414\n\n \n\nMortgage Loans Payable\n\nCONA Mortgage Loan\n\nOn October 30, 2025, the Operating Partnership, through certain subsidiaries as borrowers (collectively, the “Borrower”) entered into an amended and restated loan agreement (the “CONA Loan Agreement”) with Capital One, National Association and Associated Bank, National Association, as lenders (collectively, the “CONA Lender”) and Capital One, National Association as administrative agent, for an aggregate principal amount of $95,000 (the “CONA Mortgage Loan”). The CONA Loan Agreement amended and restated the prior loan agreement by and among the borrower, the CONA Lender and Capital One, National Association as administrative agent dated September 29, 2021, as amended by those certain amendments dated August 1, 2022 and October 31, 2023 (collectively, the “Prior CONA Loan Agreement”).\n\nThe CONA Mortgage Loan is collateralized by all the respective real and personal property owned by the Operating Partnership under the CONA Loan Agreement.\n\nAs of March 31, 2026, the Operating Partnership had $95,000 outstanding under the CONA Mortgage Loan. Advances made under the CONA Mortgage Loan are interest only. Advances made under the CONA Mortgage Loan accrue interest at (i) the applicable one-month term secured overnight financing rate (“Term SOFR”) plus (ii) 1.95%. The CONA Mortgage Loan matures on October 29, 2027, and the Operating Partnership has the option to extend the maturity date for three additional twelve month periods subject to the payment of certain fees and expenses and certain other conditions.\n\nInland Private Capital Corporation (“IPC”), an affiliate of IREIC, had guaranteed (1) any losses that the administrative agent and lenders may incur as a result of the occurrence of certain bad acts of the Operating Partnership and (2) the repayment of the CONA Mortgage Loan upon the occurrence of certain other significant events, including bankruptcy. Additionally, the Operating Partnership and IPC have agreed to indemnify the lenders against certain environmental liabilities. Pursuant to an amendment to the Prior CONA Loan Agreement, effective October 31, 2023, the CONA Mortgage Loan was amended to, among other things, (a) substitute IREIC, the General Partner’s sponsor, as the guarantor of recourse obligations and to release IPC as guarantor for all guaranteed obligations from and after such date and (b) join IREIC as an additional indemnitor under the environmental indemnity agreement.\n\nThe CONA Mortgage Loan requires compliance with certain covenants, including a minimum project yield requirement and a guarantor's net worth requirement. It also contains customary default provisions including the failure to comply with the Operating Partnership's covenants and the failure to pay when amounts outstanding under the CONA Mortgage Loan become due. As of March 31, 2026, the Operating Partnership was in compliance with all financial covenants related to the CONA Mortgage Loan.\n\nBMO Mortgage Loan\n\nOn September 30, 2021, the Operating Partnership entered into a loan agreement (the “BMO Loan Agreement”) with BMO Harris Bank N.A. (“BMO”), individually and as administrative agent, and other lenders from time to time parties to the BMO Loan Agreement (the “BMO Mortgage Loan”). The BMO Loan Agreement was amended on January 26, 2026 (the “BMO Loan Amendment”). The BMO Loan Amendment extended the maturity date of the BMO Mortgage Loan by 24 months from September 30, 2026 (subject to two one-year extensions) to September 30, 2028 and removed any further extension options.\n\nThe BMO Mortgage Loan is collateralized by all the respective properties, rights, interests, and privileges from time to time subject to the liens granted to BMO for the benefit of the lenders, or any security trustee therefor, by the collateral documents.\n\n45\n\n \n\nAs of March 31, 2026, the Operating Partnership had $122,655 outstanding under the BMO Mortgage Loan. Advances made under the BMO Mortgage Loan are interest only. Advances made under the BMO Mortgage Loan accrue interest at (i) the applicable Term SOFR plus (ii) 2.10%.\n\nIPC has guaranteed (1) any losses that the administrative agent and lenders may incur as a result of the occurrence of certain bad acts of the Operating Partnership and (2) the repayment of the BMO Mortgage Loan upon the occurrence of certain other significant events, including bankruptcy. Additionally, the Operating Partnership and IPC have agreed to indemnify the lenders against certain environmental liabilities.\n\nThe BMO Mortgage Loan requires compliance with certain covenants, including a minimum debt yield requirement, a distribution limitation, a limitation on the use of leverage and restrictions on indebtedness. It also contains customary default provisions including the failure to comply with the Operating Partnership’s covenants and the failure to pay when amounts outstanding under the BMO Mortgage Loan become due. As of March 31, 2026, the Operating Partnership was in compliance with all financial covenants related to the BMO Mortgage Loan.\n\nParkway UL Mortgage Loan\n\nOn December 1, 2022, the Operating Partnership assumed the Parkway UL Mortgage Loan in the amount of $22,000, which was the original principal amount, from Parkway Bank and Trust Company (“Parkway”) in connection with the acquisition of University Lofts. On March 28, 2024, the Operating Partnership entered into an amendment that increased the principal amount of the Parkway UL Mortgage Loan to $27,759.\n\nAs of March 31, 2026, the Operating Partnership had $27,759 outstanding under the Parkway UL Mortgage Loan. The Parkway UL Mortgage Loan bore interest at a fixed rate equal to 3.60% per annum until April 25, 2023 and at a fixed rate equal to 3.80% per annum thereafter. The Parkway UL Mortgage Loan required interest-only payments through April 26, 2023 and monthly payments of principal and interest thereafter. The initial maturity date of the Parkway UL Mortgage Loan was October 26, 2024. As extended pursuant to the amendment to the Parkway UL Mortgage Loan, the maturity date of the Parkway UL Mortgage Loan was March 28, 2026, the interest rate was equal to 5.80% per annum, and the Operating Partnership had the option to extend the maturity date for an additional three-year period subject to the payment of an extension fee, certain costs and expenses and certain other conditions. On March 28, 2026, the Operating Partnership entered into a loan modification that extended the maturity date of the Parkway UL Mortgage Loan through March 28, 2029. Upon modification, the interest rate was updated to 5.94% per annum.\n\nThe Parkway UL Mortgage Loan contains customary default provisions including the failure to pay when amounts outstanding under the Parkway UL Mortgage Loan become due. The Parkway UL Mortgage Loan is collateralized by the underlying property.\n\nParkway Storage Mortgage Loan\n\nOn April 26, 2024, the Operating Partnership entered into a loan agreement with Parkway for an aggregate principal amount of $28,000 (the “Parkway Storage Mortgage Loan”). As of March 31, 2026, the Operating Partnership had $28,000 outstanding under the Parkway Storage Mortgage Loan. The Parkway Storage Mortgage Loan bears interest at a rate equal to 5.80% per annum. The Parkway Storage Mortgage Loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The maturity date of the Parkway Storage Mortgage Loan is April 25, 2026, and the Operating Partnership has the option to extend the maturity date for an additional three-year period subject to the payment of an extension fee, certain costs and expenses and certain other conditions. Upon extension, the interest rate will be equal to the lesser of (a) 6.25% or (b) the 3-year U.S. Treasury Rate in effect on April 25, 2026 plus 2.00%. On April 25, 2026, the Operating Partnership entered into a loan modification that extended the maturity date of the Parkway Storage Mortgage Loan to April 25, 2029, with the fixed interest rate of 5.80% per annum remaining unchanged. In connection with the modification, the Operating Partnership made a principal repayment of $3,365.\n\nThe Parkway Storage Mortgage Loan contains customary default provisions including the failure to pay when amounts outstanding under the Parkway Storage Mortgage Loan become due. The Parkway Storage Mortgage Loan is collateralized by the Storage Properties.\n\nInterest Rate Swap Agreements\n\nThe Operating Partnership entered into interest rate swaps to fix a portion of its floating SOFR-based debt under variable rate loans to a fixed rate to manage its risk exposure to interest rate fluctuations. The Operating Partnership will generally match the maturity of the underlying variable rate debt with the maturity date on the interest rate swaps. See Note 11 – “Fair Value Measurements” for further information.\n\nAll of the Operating Partnership’s interest rate swap contracts are accounted for as cash flow hedges for accounting purposes.\n\n46\n\n \n\nThe following table summarizes the Operating Partnership’s interest rate swap contracts outstanding as of March 31, 2026:\n\n \n\n \n\nDate\nEntered\n\n \n\nEffective\nDate\n\n \n\nMaturity\nDate\n\n \n\nReceive Floating Rate Index (a)\n\n \n\nPay Fixed\nRate / Strike Price\n\n \n\n \n\nNotional\nAmount\n\n \n\n \n\nFair Value at\nMarch 31,\n2026 (b)\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swap agreements\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCONA Mortgage Loan swap\n\n \n\nOctober 27, 2025\n\n \n\nNovember 3, 2025\n\n \n\nSeptember 28, 2028\n\n \n\n1-month Term SOFR\n\n \n\n \n\n3.04\n\n%\n\n \n\n \n\n95,000\n\n \n\n \n\n \n\n1,141\n\n \n\nBMO Mortgage Loan swap\n\n \n\nJanuary 27, 2026\n\n \n\nJanuary 2, 2026\n\n \n\nSeptember 30, 2028\n\n \n\n1-month Term SOFR\n\n \n\n \n\n2.85\n\n%\n\n \n\n \n\n122,655\n\n \n\n \n\n \n\n2,033\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n217,655\n\n \n\n \n\n$\n\n3,174\n\n \n\n(a)\nAs of March 31, 2026, the 1-month Term SOFR was 3.66%.\n\n(b)\nThe fair value of interest rate swap agreements is included within other assets in the consolidated balance sheet.\n\nThe following table summarizes the Operating Partnership’s interest rate swap contracts outstanding as of December 31, 2025:\n\n \n\n \n\nDate\nEntered\n\n \n\nEffective\nDate\n\n \n\nMaturity\nDate\n\n \n\nReceive Floating Rate Index (a)\n\n \n\nPay Fixed\nRate / Strike Price\n\n \n\n \n\nNotional\nAmount\n\n \n\n \n\nFair Value at\nDecember 31,\n2025 (b)\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swap agreements\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBMO Mortgage Loan swap\n\n \n\nAugust 12, 2022\n\n \n\nAugust 1, 2022\n\n \n\nSeptember 30, 2026\n\n \n\n1-month Term SOFR\n\n \n\n \n\n0.87\n\n%\n\n \n\n \n\n61,500\n\n \n\n \n\n \n\n1,188\n\n \n\nCONA Mortgage Loan swap\n\n \n\nOctober 27, 2025\n\n \n\nNovember 3, 2025\n\n \n\nSeptember 28, 2028\n\n \n\n1-month Term SOFR\n\n \n\n \n\n3.04\n\n%\n\n \n\n \n\n95,000\n\n \n\n \n\n \n\n612\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n156,500\n\n \n\n \n\n$\n\n1,800\n\n \n\n(a)\nAs of December 31, 2025, the 1-month Term SOFR was 3.69%.\n\n(b)\nThe fair value of interest rate swap agreements is included within other assets in the consolidated balance sheet.\n\nThe table below presents the effect of the Operating Partnership’s derivative financial instruments on the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025.\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\nDerivatives in Cash Flow Hedging Relationships:\n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nEffective portion of derivatives\n\n \n\n$\n\n1,081\n\n \n\n \n\n$\n\n(300\n\n)\n\nReclassification adjustment for amounts included in net gain or loss (effective portion)\n\n \n\n$\n\n(868\n\n)\n\n \n\n$\n\n(1,028\n\n)\n\nThe total amount of interest expense presented on the consolidated statements of operations and comprehensive loss was $3,423 and $3,781 for the three months ended March 31, 2026 and 2025, respectively. The net gain or loss reclassified into income from accumulated other comprehensive income is reported in interest expense on the consolidated statements of operations and comprehensive loss. The amount that is expected to be reclassified from accumulated other comprehensive income into income in the next 12 months is $2,038.\n\nNOTE 5 – EQUITY\n\nThe Operating Partnership’s capital includes general and limited partnership interests in the Operating Partnership referred to as General Partner’s capital and Limited Partners’ capital, respectively, in the accompanying consolidated statements of partners’ capital. The General Partner and the Limited Partners are collectively referred to as Partners. Partnership interests in the Operating Partnership, other than the Special Limited Partner (as defined in Note 9) interest and General Partner interest, are currently divided into seven classes of units: (a) Class T OP Units; (b) Class S OP Units; (c) Class D OP Units; (d) Class I OP Units; (e) Class X-1 OP Units; (f) Class X-2 OP Units and (g) Class A OP Units. In general, the Class T OP Units, Class S OP Units, Class D OP Units, Class I OP Units, Class X-1 OP Units and Class X-2 OP Units issued to the General Partner are intended to correspond on a one-for-one basis with the General Partner’s Class T shares, Class S shares, Class D shares, Class I shares, Class X-1 shares and Class X-2 shares. Similarly, Class A OP Units issued to the General Partner are intended to correspond on a one-for-one basis with the General Partner’s Class A shares if the General Partner issues Class A shares in connection with a Class A OP Unit redemption request. When the General Partner receives proceeds from the sale of shares of its common stock, the General Partner contributes such proceeds to the Operating Partnership and receives OP Units\n\n47\n\n \n\nthat correspond to the classes of the shares sold in the offering. Additionally, the Operating Partnership may issue any of these classes of OP Units to its Limited Partners. See Note 9 – “Transactions with Related Parties” for further information on management fees and performance participation allocation for each of the classes of OP Units.\n\nAs of March 31, 2026, there were 186,088 Class T OP Units, 24,711 Class D OP Units, 376,414 Class I OP Units and 10,769 Class X-1 OP Units issued to the General Partner. As of March 31, 2025, there were 41,317 Class T OP Units, 5,190 Class D OP Units and 214,995 Class I OP Units issued to the General Partner. As of both March 31, 2026 and 2025, there were no General Partner interests issued to the General Partner.\n\nPursuant to the Fourth Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated August 28, 2025 (as may be amended or restated from time to time, the “Limited Partnership Agreement”), OP unitholders may request redemption of all or a portion of their units after holding those units for at least two years (or such shorter period as consented to by the General Partner in its sole discretion). The General Partner has discretion to accept or reject redemption requests and whether accepted redemptions will be redeemed for cash or shares in the General Partner.\n\nUnit Activity\n\nThe following tables detail the change in the Operating Partnership’s units for the three months ended March 31, 2026 and 2025:\n\nFor the Three Months Ended March 31, 2026\n\n \n\nGeneral Partner Interests\n\n \n\n \n\nLimited Partner Interests\n\n \n\n \n\n \n\n \n\n \n\n \n\nClass A OP Units\n\n \n\n \n\nClass T OP Units (1)\n\n \n\n \n\nClass D OP Units (1)\n\n \n\n \n\nClass I OP Units (1)\n\n \n\n \n\nClass X-1 OP Units (1)\n\n \n\nBeginning balance\n\n \n\n \n\n—\n\n \n\n \n\n \n\n5,377,699\n\n \n\n \n\n \n\n180,409\n\n \n\n \n\n \n\n24,491\n\n \n\n \n\n \n\n439,471\n\n \n\n \n\n \n\n4,298\n\n \n\nIssuance of units\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13,062\n\n \n\n \n\n \n\n220\n\n \n\n \n\n \n\n28,795\n\n \n\n \n\n \n\n6,471\n\n \n\nRedemptions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(82,754\n\n)\n\n \n\n \n\n(3,002\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(140\n\n)\n\n \n\n \n\n—\n\n \n\nEnding balance\n\n \n\n \n\n—\n\n \n\n \n\n \n\n5,294,945\n\n \n\n \n\n \n\n190,469\n\n \n\n \n\n \n\n24,711\n\n \n\n \n\n \n\n468,126\n\n \n\n \n\n \n\n10,769\n\n \n\n \n\nFor the Three Months Ended March 31, 2025\n\n \n\nGeneral Partner Interests\n\n \n\n \n\nLimited Partner Interests\n\n \n\n \n\n \n\n \n\n \n\n \n\nClass A OP Units\n\n \n\n \n\nClass T OP Units (2)\n\n \n\n \n\nClass D OP Units (2)\n\n \n\n \n\nClass I OP Units (2)\n\n \n\nBeginning balance\n\n \n\n \n\n—\n\n \n\n \n\n \n\n5,499,623\n\n \n\n \n\n \n\n25,556\n\n \n\n \n\n \n\n2,266\n\n \n\n \n\n \n\n281,978\n\n \n\nIssuance of units\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n20,142\n\n \n\n \n\n \n\n2,924\n\n \n\n \n\n \n\n24,728\n\n \n\nRedemptions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(36,904\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nEnding balance\n\n \n\n \n\n—\n\n \n\n \n\n \n\n5,462,719\n\n \n\n \n\n \n\n45,698\n\n \n\n \n\n \n\n5,190\n\n \n\n \n\n \n\n306,706\n\n \n\n(1) As of March 31, 2026, 97.7% of the Class T OP Units, 100.0% of the Class D OP Units, 80.4% of the Class I OP Units and 100.0% of the Class X-1 OP Units were held by the General Partner.\n\n(2) As of March 31, 2025, 90.4% of the Class T OP Units, 100% of the Class D OP Units and 70.1% of the Class I OP Units were held by the General Partner.\n\nNOTE 6 – DISTRIBUTIONS\n\nPartners are entitled, based on their respective partnership interests, to monthly cash distributions payable by the Operating Partnership. The General Partner, in its sole discretion, determines the timing and amount of any distributions to the Partners. Such cash flow, if available, will be distributed on a monthly basis.\n\nThe table below presents the distributions paid and accrued to Partners for the three months ended March 31, 2026 and 2025.\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nDistributions paid\n\n \n\n$\n\n1,809\n\n \n\n \n\n$\n\n1,719\n\n \n\nDistributions accrued\n\n \n\n$\n\n1,867\n\n \n\n \n\n$\n\n1,813\n\n \n\n \n\n48\n\n \n\n \n\nNOTE 7 –LEASES\n\nRental Revenue as a Lessor\n\nThe Operating Partnership leases its 30 medical outpatient properties, four self-storage properties and one student housing property under long-term and short-term operating leases. The remaining lease terms for the Operating Partnership’s medical outpatient leases, as of March 31, 2026, range from 1.9 years to 14.8 years. The leases for self-storage units generally are on a month-to-month basis. The lease terms for the Operating Partnership’s student housing leases generally approximate one year.\n\nMedical outpatient leases require the tenant to pay fixed base rent paid monthly in advance, and to reimburse the Operating Partnership for the tenant’s pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the Operating Partnership and recoverable under the terms of the lease. Under these leases, the Operating Partnership pays all expenses and is reimbursed by the tenant for the tenant’s pro rata share of recoverable expenses paid. Self-storage units are leased to individual tenants under lease agreements, which generally are on a month-to-month basis. Student housing properties are typically leased by the bed on an individual lease liability basis and require the tenant to pay fixed base rent paid monthly in advance, and to reimburse the Operating Partnership for certain costs, primarily the tenant’s share of utilities expenses, incurred by the Operating Partnership. Under leases where all expenses are paid by the Operating Partnership, subject to reimbursement by the tenant, the expenses are included within property operating expenses. As per ASC 842, reimbursements for common area maintenance are considered non-lease components that are permitted to be combined with rental revenue. The combined lease component and reimbursements for insurance and taxes are reported as rental revenue on the consolidated statements of operations and comprehensive loss.\n\nCertain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included on the consolidated statements of operations and comprehensive loss.\n\nRental revenue related to the Operating Partnership’s operating leases is comprised of the following:\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nRental revenue - fixed payments\n\n \n\n$\n\n7,395\n\n \n\n \n\n$\n\n7,297\n\n \n\nRental revenue - variable payments (a)\n\n \n\n \n\n788\n\n \n\n \n\n \n\n721\n\n \n\nAmortization of acquired above- and below-market leases, net\n\n \n\n \n\n350\n\n \n\n \n\n \n\n315\n\n \n\nRental revenue\n\n \n\n$\n\n8,533\n\n \n\n \n\n$\n\n8,333\n\n \n\n \n\n(a)\nPrimarily includes tenant recovery income for real estate taxes, common area maintenance and insurance.\n\nThe table below presents future base rent payments, excluding variable lease payments, to be received under the Operating Partnership’s operating leases as of March 31, 2026 for the years indicated, assuming no early terminations or expiring leases are renewed. Leases for the self-storage properties and the student housing property are generally 12 months or less and are therefore excluded from the table below.\n\n \n\n \n\nLease\nPayments\n\n \n\n2026 (remainder of the year)\n\n \n\n$\n\n15,029\n\n \n\n2027\n\n \n\n \n\n20,427\n\n \n\n2028\n\n \n\n \n\n19,919\n\n \n\n2029\n\n \n\n \n\n19,413\n\n \n\n2030\n\n \n\n \n\n18,577\n\n \n\nThereafter\n\n \n\n \n\n74,746\n\n \n\nTotal\n\n \n\n$\n\n168,111\n\n \n\n \n\n49\n\n \n\nConcentration of Credit Risk\n\nRevenue Concentration\n\nThe table below shows the Operating Partnership’s revenue concentration from tenants as a percentage of the Operating Partnership’s total revenues for the three months ended March 31, 2026 and 2025:\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\nTenant\n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nIronwood Physicians, P.C.\n\n \n\n \n\n16\n\n%\n\n \n\n \n\n16\n\n%\n\nMemorial Hermann Health System\n\n \n\n \n\n12\n\n%\n\n \n\n \n\n11\n\n%\n\nGeographic Concentration\n\nAs of both March 31, 2026 and December 31, 2025, Arizona, Texas and Connecticut represented approximately 27%, 26% and 15%, respectively, of the Operating Partnership’s total rentable square feet of medical outpatient properties.\n\nAs of both March 31, 2026, and December 31, 2025, Alabama and Georgia represented approximately 61% and 39%, respectively, of the Operating Partnership’s total rentable square feet of self-storage properties.\n\nLease Expense as a Lessee\n\nThe below table shows the remaining lease term, including extensions, as of March 31, 2026, for the leases where the Operating Partnership is a lessee:\n\nGround Lease\n\n \n\nRemaining Lease Term (in years)\n\n \n\nPhoenix Property\n\n \n\n \n\n66\n\n \n\nJordan Valley Medical Center\n\n \n\n \n\n134\n\n \n\nSaint Elizabeth Medical Center\n\n \n\n \n\n82\n\n \n\nFor the three months ended March 31, 2026 and 2025, total rent expense was $79 and $79, recorded in property operating expenses on the consolidated statements of operations and comprehensive loss.\n\nThe table below shows the cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2026 and 2025:\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nOperating cash flows - operating leases\n\n \n\n$\n\n17\n\n \n\n \n\n$\n\n17\n\n \n\nOperating cash flows - finance leases\n\n \n\n$\n\n26\n\n \n\n \n\n$\n\n26\n\n \n\nFor the three months ended March 31, 2026 and 2025, total finance lease cost was comprised as follows:\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nAmortization of finance lease right-of-use asset\n\n \n\n$\n\n13\n\n \n\n \n\n$\n\n13\n\n \n\nInterest on finance lease liability\n\n \n\n \n\n36\n\n \n\n \n\n \n\n36\n\n \n\nTotal finance lease cost\n\n \n\n$\n\n49\n\n \n\n \n\n$\n\n49\n\n \n\n \n\n50\n\n \n\nThe table below shows the Operating Partnership’s finance lease right-of-use asset, net of amortization as of March 31, 2026 and December 31, 2025:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nFinance lease right-of-use asset, gross\n\n \n\n$\n\n2,230\n\n \n\n \n\n$\n\n2,230\n\n \n\nAccumulated amortization\n\n \n\n \n\n(248\n\n)\n\n \n\n \n\n(235\n\n)\n\nFinance lease right-of-use asset, net of amortization\n\n \n\n$\n\n1,982\n\n \n\n \n\n$\n\n1,995\n\n \n\nLease payments for the ground leases as of March 31, 2026 for each of the five succeeding years and thereafter is as follows:\n\n \n\n \n\nOperating\n\n \n\n \n\nFinance\n\n \n\n2026 (remainder of the year)\n\n \n\n$\n\n50\n\n \n\n \n\n$\n\n79\n\n \n\n2027\n\n \n\n \n\n67\n\n \n\n \n\n \n\n121\n\n \n\n2028\n\n \n\n \n\n70\n\n \n\n \n\n \n\n121\n\n \n\n2029\n\n \n\n \n\n73\n\n \n\n \n\n \n\n121\n\n \n\n2030\n\n \n\n \n\n73\n\n \n\n \n\n \n\n121\n\n \n\nThereafter\n\n \n\n \n\n6,612\n\n \n\n \n\n \n\n16,460\n\n \n\nTotal undiscounted lease payments\n\n \n\n$\n\n6,945\n\n \n\n \n\n$\n\n17,023\n\n \n\nLess: Amount representing interest\n\n \n\n \n\n(5,178\n\n)\n\n \n\n \n\n(14,123\n\n)\n\nPresent value of lease liability\n\n \n\n$\n\n1,767\n\n \n\n \n\n$\n\n2,900\n\n \n\n \n\nNOTE 8 – COMMITMENTS AND CONTINGENCIES\n\nThe Operating Partnership may be subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. As of both March 31, 2026 and December 31, 2025, the Operating Partnership was not subject to any material litigation or aware of any pending or threatened material litigation.\n\nWhile the Operating Partnership currently has no intent to sell any of its properties, if the Operating Partnership were to sell properties in Texas, it has the potential to trigger Texas franchise tax for the Operating Partnership. The amount of tax, if any, will depend on several factors and any future sales of Texas properties meeting the requirements of the Internal Revenue Code Section 1031 (like-kind exchanges), which are non-taxable, would result in no franchise tax being incurred. The Operating Partnership has not recorded a tax liability for Texas franchise tax as it is considered contingent upon events not currently expected to occur.\n\nThe Operating Partnership entered into tax protection agreements with certain partners that contributed property interests to the Operating Partnership. Such agreements indemnify the contributing partners from incurring any tax consequences triggered by a taxable sale of properties and expire between September 2028 and April 2029. The Operating Partnership has not recorded any tax liabilities in connection with tax protection agreements as they are considered contingent upon events that are not currently expected to occur.\n\nNOTE 9 – TRANSACTIONS WITH RELATED PARTIES\n\nThe following table summarizes the related party transactions for the three months ended March 31, 2026 and 2025. Certain compensation and fees payable to the Advisor for services provided to the Operating Partnership are limited to maximum amounts.\n\n \n\n \n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\nUnpaid amounts as of\n\n \n\n \n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nGeneral and administrative reimbursements\n\n \n\n(a)\n\n \n\n$\n\n251\n\n \n\n \n\n$\n\n240\n\n \n\n \n\n$\n\n234\n\n \n\n \n\n$\n\n121\n\n \n\nInterest expense\n\n \n\n(b)\n\n \n\n$\n\n106\n\n \n\n \n\n$\n\n106\n\n \n\n \n\n$\n\n33\n\n \n\n \n\n$\n\n29\n\n \n\nOffering costs\n\n \n\n(c)\n\n \n\n$\n\n10\n\n \n\n \n\n$\n\n20\n\n \n\n \n\n$\n\n272\n\n \n\n \n\n$\n\n264\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty management fees\n\n \n\n \n\n \n\n$\n\n185\n\n \n\n \n\n$\n\n170\n\n \n\n \n\n$\n\n15\n\n \n\n \n\n$\n\n20\n\n \n\nProperty operating expenses\n\n \n\n \n\n \n\n \n\n126\n\n \n\n \n\n \n\n120\n\n \n\n \n\n \n\n2\n\n \n\n \n\n \n\n3\n\n \n\nTotal property management related costs\n\n \n\n(d)\n\n \n\n$\n\n311\n\n \n\n \n\n$\n\n290\n\n \n\n \n\n$\n\n17\n\n \n\n \n\n$\n\n23\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAdvisor management fee\n\n \n\n(e)\n\n \n\n$\n\n207\n\n \n\n \n\n$\n\n192\n\n \n\n \n\n$\n\n70\n\n \n\n \n\n$\n\n68\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerformance participation allocation\n\n \n\n \n\n \n\n$\n\n661\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n661\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n51\n\n \n\n(a)\nThe Advisor and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Advisor or its related parties relating to the Operating Partnership’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. Unpaid amounts are included in due to related parties on the consolidated balance sheets.\n\n(b)\nThe Operating Partnership incurs interest expense on the amounts drawn under the Credit Facility (as defined below) with IPC. See “Related Party Line of Credit” below for further information on the Credit Facility.\n\n(c)\nThe Operating Partnership pays offering costs to certain related parties, for the Operating Partnership as well as the General Partner, attributable to the preparation of the Registration Statement and registration and qualification of the General Partner’s common stock under federal and state laws. Unpaid amounts are included in due to related parties on the consolidated balance sheets.\n\nUnpaid amounts include accrued distribution fees payable to Inland Securities Corporation (the “Dealer Manager”). In connection with the acquisition of the Storage Properties, on February 13, 2024, the Operating Partnership, the General Partner and the Dealer Manager entered into a dealer manager agreement (the “DST Dealer Manager Agreement”) under which the OP Units were sold through the Dealer Manager to the investors electing to receive OP Units. Under the DST Dealer Manager Agreement, the Operating Partnership will pay the Dealer Manager (a) a distribution fee with respect to outstanding Class T OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.85% per annum of the aggregate net asset value (“NAV”) (as determined in accordance with the General Partner’s valuation guidelines) of such outstanding Class T OP Units; (b) a distribution fee with respect to outstanding Class S OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.85% per annum of the aggregate NAV of such outstanding Class S OP Units; and (c) a distribution fee with respect to outstanding Class D OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.25% per annum of the aggregate NAV of such outstanding Class D units. The Operating Partnership will not pay a distribution fee with respect to Class I OP Units sold pursuant to the DST Dealer Manager Agreement. The Operating Partnership will cease paying the distribution fee with respect to any Class T, Class S or Class D OP Unit held in a unitholder’s account upon the occurrence of certain events. The Operating Partnership accrues the full cost of the distribution fee as an offering cost at the time the Operating Partnership sells Class T, Class S, and Class D OP Units. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.\n\n(d)\nFor each property that is managed by Inland Commercial Real Estate Services LLC (“Inland Commercial”), the Operating Partnership pays a monthly property management fee of up to 1.9% of the gross income from any single-tenant, net-leased property, 5.0% of the base rent for one of the properties, and up to 3.9% of the gross income from any other property type. Inland Commercial may, in its sole discretion, waive fees with respect to a particular property. For each property that is managed directly by Inland Commercial or its affiliates, the Operating Partnership pays Inland Commercial a separate leasing fee, if applicable. Further, in the event that the Operating Partnership engages Inland Commercial to provide construction management services for a property, the Operating Partnership pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Operating Partnership also reimburses Inland Commercial and its affiliates for property-level expenses that they pay or incur on the Operating Partnership’s behalf, including the salaries, bonuses and benefits of persons performing services for Inland Commercial and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of Inland Commercial or the Operating Partnership.\n\nFor the properties managed by Inland Devon Self Storage Holdings LLC (“Devon”), an affiliate of IREIC, the Operating Partnership pays Devon a monthly management fee in an amount equivalent to the greater 5.0% of the “gross revenue,” as defined in the agreement, generated on an aggregate basis from the property during the preceding calendar month or $3 on an aggregate basis, whichever is greater. If Devon supervises any capital improvement project for the property owner, the Operating Partnership will also pay Devon a development supervision fee, in an amount equal to 10% of the cost of the project if the project is completed by Devon or in an amount equal to 7% if the project is completed by a third party. Additionally, Devon will issue the Operating Partnership a monthly credit equal to any monthly administrative fee collected by Devon in connection with the insurance premiums collected at the property.\n\nProperty management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive loss. Unpaid amounts are included in due to related parties on the consolidated balance sheets.\n\n52\n\n \n\n(e)\nPer the Advisory Agreement, the Operating Partnership or the General Partner pays the Advisor a management fee equal to (i) 1.25% of aggregate NAV of the Operating Partnership attributable to outstanding Class T OP Units, Class S OP Units, Class D OP Units and Class I OP Units of the Operating Partnership, (ii) 1.00% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-1 OP Units, (iii) 0.75% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-2 OP Units and (iv) 0.50% of the aggregate NAV of the Operating Partnership attributable to outstanding Class A OP Units, in each case per annum payable monthly in arrears. The management fee may be paid, at the Advisor’s election, in cash, Class I shares of the General Partner or Class I OP Units of the Operating Partnership. The management fee is included within Advisor management fee in the consolidated statements of operations and comprehensive loss. Unpaid amounts are included in due to related parties on the consolidated balance sheets.\n\nPerformance Participation Allocation\n\nThe Operating Partnership is governed by the Limited Partnership Agreement. On August 24, 2023, the General Partner admitted IPC REIT Special Limited Partner, LP (the “Special Limited Partner”), an affiliate, as a limited partner of the Operating Partnership and the Special Limited Partner contributed $10 for a performance participation interest in the Operating Partnership. The Special Limited Partner’s performance participation interest in the Operating Partnership entitles the Special Limited Partner to receive an allocation of “Total Return,” “Class X-1 Total Return” and “Class A Total Return.”\n\n“Total Return” is defined as distributions paid or accrued on OP Units (excluding Class X-1 OP Units, Class X-2 OP Units and Class A OP Units) plus the change in the NAV of such OP Units (excluding Class X-1 OP Units, Class X-2 OP Units and Class A OP Units), adjusted for subscriptions and repurchases. Under the Limited Partnership Agreement, the annual Total Return will be allocated solely to the Special Limited Partner only after the Class T OP Unit, Class S OP Unit, Class D OP Unit and Class I OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Total Return.\n\n“Class X-1 Total Return” is defined as distributions paid or accrued on Class X-1 OP Units plus the change in NAV of such Class X-1 OP Units, adjusted for subscriptions and repurchases. Under the Limited Partnership Agreement, the annual Class X-1 Total Return will be allocated solely to the Special Limited Partner only after the Class X-1 OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class X-1 OP Unit holders is equal to 10.0% and 90.0%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 10.0% of the annual Class X-1 Total Return.\n\n“Class A Total Return” is defined as distributions paid or accrued on Class A OP Units plus the change in the NAV of such Class A OP Units, adjusted for subscriptions and repurchases. Under the Limited Partnership Agreement, the annual Class A Total Return will be allocated solely to the Special Limited Partner only after the Class A OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class A OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Class A Total Return.\n\nThe Special Limited Partner is not entitled to a performance participation allocation with respect to Class X-2 OP Units. The performance participation allocations are subject to a loss carryforward which initially equaled zero and is cumulatively increased by the absolute value of any negative annual Total Return, Class X-1 Total Return or Class A Total Return (as applicable) and decreased by any positive annual Total Return, Class X-1 Total Return or Class A Total Return (as applicable), provided that the loss carryforward amount shall at no time be less than zero and provided further that the calculation of the loss carryforward amount will exclude the Total Return, Class X-1 Total Return or Class A Total Return (as applicable) related to any OP Units redeemed during the year, which are subject to the performance participation allocation upon redemption. As of March 31, 2026 and 2025, the Special Limited Partner had accrued a performance participation allocation of $661 and $0, respectively.\n\nRelated Party Line of Credit\n\nOn October 27, 2023, the Operating Partnership entered into a revolving credit facility loan agreement (the “Credit Agreement”) and a revolving promissory note (together with the Credit Agreement, the “Credit Facility”) with IPC, as lender.\n\nThe Credit Facility provides for loan advances in an aggregate amount not to exceed $22,500, with an original maturity date of November 30, 2024 (as may be amended, modified, extended or renewed, but not accelerated, in IPC’s sole discretion) or the date IPC declares obligations under the Credit Facility, or the obligations become, due and payable after the occurrence of an event of default (the “Loan”). On November 26, 2024, the Operating Partnership and IPC modified the Credit Facility to extend the maturity date of the Credit Facility to November 30, 2025. On November 19, 2025, the Operating Partnership and IPC further modified the Credit Facility to extend the\n\n53\n\n \n\nmaturity date of the Credit Facility to November 30, 2026. The daily balance of the Loan under the Credit Facility bears interest at a rate of 4.25% per annum, however in connection with the occurrence and continuance of certain events of default (and at IPC’s option for all other events of default), the interest rate will increase to 9.25% per annum. The Operating Partnership has the right to prepay all or any part of the Loan at any time upon five days’ notice to IPC. The Credit Facility acts in the manner of a revolving credit facility wherein prepayments from the Operating Partnership shall be available for funding future advances to the Operating Partnership.\n\nAs of March 31, 2026 and December 31, 2025, the Operating Partnership had an outstanding balance of $9,000 and $8,000, respectively, on the Credit Facility.\n\nClass A OP Units held by Affiliates\n\nAs of both March 31, 2026 and December 31, 2025, 75,484 Class A OP Units, which represents 1.43% and 1.40%, respectively, of the total Class A OP Units, were held by IPC and its affiliates.\n\nDST Program\n\nIPC maintains a program, which commenced on June 27, 2024 (the “DST Program”), through which it sponsors a series of private placements exempt from registration pursuant to Rule 506(b) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) of beneficial interests in specific DSTs owning one or more real properties. The DST Program is designed for, but not limited to, prospective investors seeking to defer the recognition of gain on the sale of other real property under Section 1031 of the Internal Revenue Code. In connection with the DST Program, the Operating Partnership, each DST, and each DST investor enter into an option agreement pursuant to which the Operating Partnership will be granted the option (the “FMV Option”), but not the obligation, exercisable in the Operating Partnership’s sole and absolute discretion, to require such DST investor to exchange his, her or its DST interest for Class T OP Units, Class S OP Units, Class D OP Units, Class I OP Units, or, in limited circumstances at the discretion of the Operating Partnership, cash, which option may be exercised during the three, three-month periods that begin on the 24-month, 36-month and 48-month anniversary of the final closing of the sale of DST interests pursuant to each private placement.\n\nIn connection with each private placement, each DST, the General Partner, the Operating Partnership and the Dealer Manager enter into a placement agent agreement pursuant to which the Dealer Manager, as placement agent, will offer and sell beneficial interest in the applicable DST. The General Partner and the Operating Partnership are only party to such placement agent agreement for the limited purpose of paying the distribution fees that may be payable to the Dealer Manager in connection with an exercise of the FMV Option.\n\nIn connection with the DST Program, IPC, the General Partner and the Operating Partnership entered into a letter agreement (the “IPC Indemnification Agreement”) on June 27, 2024 pursuant to which parties provide mutual indemnification obligations with respect to the private placements sponsored by IPC. Under the IPC Indemnification Agreement, the General Partner and the Operating Partnership have agreed to indemnify IPC, its officer and directors, and each person, if any, who controls IPC within the meaning of the Securities Act, against any and all Loss (as defined in the IPC Indemnification Agreement) caused by or based on: (i) any untrue statement or alleged untrue statement of a material fact relating to the General Partner or the Operating Partnership which was furnished or approved by the General Partner or the Operating Partnership specifically for inclusion in, and actually contained in the offering materials related to the private placements but specifically excluding any tax consequences related to the OP Units (collectively, the “General Partner Information”) and (ii) the omission or alleged omission therefrom of a material fact regarding the General Partner or the Operating Partnership required to be stated in the General Partner Information (excluding any tax consequences related to the OP Units) or necessary to make the statements in the General Partner Information, in light of the circumstances under which they were made, not misleading.\n\nOther assets\n\nAs of March 31, 2026 and December 31, 2025, other assets includes $1 and $1, respectively, of prepaid expenses to Devon.\n\nNOTE 10 – EQUITY-BASED COMPENSATION\n\nThe following table details the Class I OP Units issued by the Operating Partnership to the General Partner as a result of the restricted share grants by the General Partner to its independent directors at each grant date as of March 31, 2026 with a vesting date after January 1, 2025.\n\n54\n\n \n\nGrant Date\n\n \n\nClass of OP Units granted\n\n \n\nTotal number of units granted\n\n \n\n \n\nVesting Date\n\n3/19/2024\n\n \n\nClass I\n\n \n\n \n\n2,387\n\n \n\n \n\n3/19/2025\n\n8/1/2024\n\n \n\nClass I\n\n \n\n \n\n3,335\n\n \n\n \n\n8/1/2025\n\n8/1/2025\n\n \n\nClass I\n\n \n\n \n\n3,548\n\n \n\n \n\n8/1/2026\n\n1/6/2026\n\n \n\nClass I\n\n \n\n \n\n1,172\n\n \n\n \n\n1/6/2027\n\nCompensation expense associated with such units is recognized by the Operating Partnership over a one-year period from the date of the grant. Compensation expense associated with such units issued to the General Partner was $28 and $31 for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the General Partner had $48 of unrecognized compensation expense related to such units, in the aggregate. The weighted average remaining period that unrecognized compensation expense related to such units will be recognized is 0.5 years.\n\nNOTE 11 – FAIR VALUE MEASUREMENTS\n\nThe Operating Partnership defines fair value based on the price that it believes would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Operating Partnership establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below:\n\n \n\nLevel 1 −\n\n \n\nQuoted prices in active markets for identical assets or liabilities that the entity has the ability to access.\n\n \n\n \n\n \n\nLevel 2 −\n\n \n\nObservable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.\n\n \n\n \n\n \n\nLevel 3 −\n\n \n\nUnobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.\n\nThe Operating Partnership has estimated the fair value of its financial and non-financial instruments using available market information and valuation methodologies the Operating Partnership believes to be appropriate for these purposes.\n\nRecurring Fair Value Measurements\n\nFor assets and liabilities measured at fair value on a recurring basis, the table below presents the fair value of the Operating Partnership’s cash flow hedges as well as their classification on the consolidated balance sheets as of March 31, 2026 and December 31, 2025.\n\n \n\n \n\nFair Value\n\n \n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swap agreements - Other assets\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n3,174\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n3,174\n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swap agreements - Other assets\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,800\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,800\n\n \n\nThe fair value of derivative instruments was estimated based on data observed in the forward yield curve which is widely observed in the marketplace. The Operating Partnership also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the counterparty’s nonperformance risk in the fair value measurements which utilize Level 3 inputs, such as estimates of current credit spreads. The Operating Partnership has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative interest rate swap agreements and therefore has classified these in Level 2 of the hierarchy.\n\nNOTE 12 – SEGMENT REPORTING\n\nAs of March 31, 2026, the Operating Partnership operates in three reportable segments: Healthcare, Self-Storage and Education. The Operating Partnership assesses performance and makes operational decisions based on the performance of each segment individually. Factors used to determine the Operating Partnership’s reportable segments include the physical and economic characteristics of the properties and the related operating activities. The accounting policies of the segments are the same as those described in the summary of significant accounting policies for the Operating Partnership. The chief operating decision maker (“CODM”) relies on segment net operating income to make decisions about allocating resources and assessing segment performance. Segment net operating income is the key performance metric that captures the unique operating characteristics of each segment. The Operating Partnership defines\n\n55\n\n \n\nsegment net operating income as total revenues less property operating expenses and real estate tax expense attributable to the segment. The significant segment expenses provided to the CODM are property operating expenses and the real estate tax expense, which are both disclosed in the tables below. The Operating Partnership’s CODM is the Chief Executive Officer of the General Partner.\n\nThe following table details the total assets by reportable segment as of March 31, 2026 and December 31, 2025:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nHealthcare\n\n \n\n$\n\n349,324\n\n \n\n \n\n$\n\n350,162\n\n \n\nSelf-Storage\n\n \n\n \n\n38,864\n\n \n\n \n\n \n\n39,132\n\n \n\nEducation\n\n \n\n \n\n32,921\n\n \n\n \n\n \n\n33,368\n\n \n\nCorporate and other\n\n \n\n \n\n7,036\n\n \n\n \n\n \n\n9,058\n\n \n\nTotal assets\n\n \n\n$\n\n428,145\n\n \n\n \n\n$\n\n431,720\n\n \n\nThe following table details the financial results by reportable segment for the three months ended March 31, 2026:\n\n \n\n \n\nHealthcare\n\n \n\n \n\nSelf-Storage\n\n \n\n \n\nEducation\n\n \n\n \n\nTotal\n\n \n\nRevenues:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRental revenue\n\n \n\n$\n\n6,466\n\n \n\n \n\n$\n\n832\n\n \n\n \n\n$\n\n1,235\n\n \n\n \n\n$\n\n8,533\n\n \n\nOther property revenue\n\n \n\n \n\n—\n\n \n\n \n\n \n\n97\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n97\n\n \n\nTotal revenues\n\n \n\n \n\n6,466\n\n \n\n \n\n \n\n929\n\n \n\n \n\n \n\n1,235\n\n \n\n \n\n \n\n8,630\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty operating expenses\n\n \n\n \n\n539\n\n \n\n \n\n \n\n300\n\n \n\n \n\n \n\n545\n\n \n\n \n\n \n\n1,384\n\n \n\nReal estate tax expense\n\n \n\n \n\n284\n\n \n\n \n\n \n\n104\n\n \n\n \n\n \n\n116\n\n \n\n \n\n \n\n504\n\n \n\nTotal expenses\n\n \n\n \n\n823\n\n \n\n \n\n \n\n404\n\n \n\n \n\n \n\n661\n\n \n\n \n\n \n\n1,888\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSegment net operating income\n\n \n\n$\n\n5,643\n\n \n\n \n\n$\n\n525\n\n \n\n \n\n$\n\n574\n\n \n\n \n\n$\n\n6,742\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n\n$\n\n(3,703\n\n)\n\n \n\n$\n\n(309\n\n)\n\n \n\n$\n\n(396\n\n)\n\n \n\n$\n\n(4,408\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGeneral and administrative expenses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(1,611\n\n)\n\nAdvisor management fee\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(207\n\n)\n\nPerformance participation allocation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(661\n\n)\n\nInterest expense\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(3,423\n\n)\n\nInterest and other income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n7\n\n \n\nNet loss\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(3,561\n\n)\n\n \n\n56\n\n \n\nThe following table details the financial results by reportable segment for the three months ended March 31, 2025:\n\n \n\n \n\nHealthcare\n\n \n\n \n\nSelf-Storage\n\n \n\n \n\nEducation\n\n \n\n \n\nTotal\n\n \n\nRevenues:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRental revenue\n\n \n\n$\n\n6,052\n\n \n\n \n\n$\n\n842\n\n \n\n \n\n$\n\n1,439\n\n \n\n \n\n$\n\n8,333\n\n \n\nOther property revenue\n\n \n\n \n\n—\n\n \n\n \n\n \n\n62\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n62\n\n \n\nTotal revenues\n\n \n\n \n\n6,052\n\n \n\n \n\n \n\n904\n\n \n\n \n\n \n\n1,439\n\n \n\n \n\n \n\n8,395\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty operating expenses\n\n \n\n \n\n451\n\n \n\n \n\n \n\n302\n\n \n\n \n\n \n\n472\n\n \n\n \n\n \n\n1,225\n\n \n\nReal estate tax expense\n\n \n\n \n\n282\n\n \n\n \n\n \n\n81\n\n \n\n \n\n \n\n100\n\n \n\n \n\n \n\n463\n\n \n\nTotal expenses\n\n \n\n \n\n733\n\n \n\n \n\n \n\n383\n\n \n\n \n\n \n\n572\n\n \n\n \n\n \n\n1,688\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSegment net operating income\n\n \n\n$\n\n5,319\n\n \n\n \n\n$\n\n521\n\n \n\n \n\n$\n\n867\n\n \n\n \n\n$\n\n6,707\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n\n$\n\n(4,162\n\n)\n\n \n\n$\n\n(302\n\n)\n\n \n\n$\n\n(368\n\n)\n\n \n\n$\n\n(4,832\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGeneral and administrative expenses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(1,022\n\n)\n\nAdvisor management fee\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(192\n\n)\n\nInterest expense\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(3,781\n\n)\n\nNet loss\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(3,120\n\n)\n\n \n\nNOTE 13 – SUBSEQUENT EVENTS\n\nIn connection with the preparation of its consolidated financial statements, the Operating Partnership has evaluated events that occurred through May 13, 2026, which is the date of issuance of these consolidated financial statements to determine whether any of these events required disclosure in the consolidated financial statements.\n\nParkway Storage Mortgage Loan Modification\n\nOn April 25, 2026, the Operating Partnership entered into a loan modification that extended the maturity date of the Parkway Storage Mortgage Loan to April 25, 2029, with the fixed interest rate of 5.80% per annum remaining unchanged. In connection with the modification, the Operating Partnership made a principal repayment of $3,365 using borrowings under the Credit Facility.\n\n57"}